I have an 8 unit bungalow apartment for $685k. Why can't I sell it? Am I not presenting it correctly?

In Selling Property - Asked by Doug B. - Aug 19, 2009
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Answer(s)

William B.
Broker/Agent
Fort Lauderdale, FL

Where is the property located? I can tell you here in FL, $85,625 per unit will sit on the market all day long. How do the numbers work? What is your NOI? Cash on cash return at that number? Condition of property? Contact me and we can run some numbers.
BB

Aug 19, 2009
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Gary Q.
Broker/Agent
Dallas, TX

I am in Dallas, TX....if there is anything that I can do to help you with this property please call me....866.433.5678....

Aug 19, 2009
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Lisa R.
Broker/Agent
Phoenix, AZ

You may want to consider listing it with a broker. A Certified Commercial Investment Member (CCIM) would be best. Wherever you are I can help you find one.

Aug 19, 2009
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William C.
Broker/Agent
Dallas, TX

It is too expensive, everything sells for the right price.

Aug 19, 2009
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Andrew G.
Owner/Investor
Carrollton, TX

Not enough cash flow with only 8 units!

Aug 20, 2009
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Paul S.
Broker/Agent
Glendora, CA

There are 5 things that make a property sell: price, terms, location, condition and income. The last 4 all affect the price and the price can over come the other 4. If something is hard to finance the price will go down. Bad location=price down. Poor condition, price down. Everything relates back to price. If the property has an incredible income the price will be higher relative to other similar properties. Since it is income producing property there will be a cap rate that things sell at, wherever it is. If you compare the 5 things that make a property sell to your competition I suspect you are off the mark with at least one of them, maybe more? You can't do much about terms and location. You have to adjust your price to reflect good or bad things about those 2. You might make the condition better but it is usually easier to make an adjustment in price unless there is a big upside to fixing. Same thing for income. You won't be able to sell it for what it will be. In this market a buyer is not going to give you a proforma price because prices are skyrocketing upward. You price will need to reflect a cap that is competitive in the market you are in or maybe slightly better? If you need to analyze where you are at give me a call at 800 554-7362 ext. 208 or pstoski@yahoo.com
Paul Sylvester, CCIM

Aug 20, 2009
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STEVE S.
Broker/Agent
Houston, TX

Paul is right, except he left off the most important component in creating a successful sale, the Broker. The other five components are price, terms, location, condition and income. There are many sales which at first glance were impossible but they closed and others which should have closed the first day, yet they sat on the market. The ability of the Broker to market "out of the box" and effectively create interest and urgency, find potential buyers and the ability to close is what sets a successful Broker apart from the masses. I have a reputation as a closer and it's proven to be my stongest asset in real estate sales, commercial or residential. If it is dirt, I sell it! Please call me if I can be of help as I understand your frustration and may be able to provide some insight. Sometimes you can be too close to the task?
Regards,
Ann Dashiell
Broker & Designer
anndashiell@aol.com

Aug 21, 2009
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Dan M.
Broker/Agent
Peotone, IL

The reason that you have not sold your property is because of one of two reasons or for both reasons. First, it may be over priced. Second, it is not being marketed for the greatest exposure to potential buyers for this type of property. Correct one or both of these problems, and your property will sell. Guaranteed. 90% of the time it comes down to the price. I am a commercial broker and owner of First Metro Realty and will figure out if you have this property priced correctly. Call me at 708-204-2064. Dan Murray, Broker/Owner First Metro Realty

Aug 24, 2009
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Gregory NNN G.
Broker/Agent
San Francisco, CA

How did you come to the $685k value?
http://www.gregorygarver.com

Sep 1, 2009
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Louis W.
Broker/Agent
Needham, MA

First get rite of the bungalow it makes it sound small, cute. 2nd state the values of it. location, price, return, condition
Lastly price it to sell it, it will sell and you will get the most for it. ie: 599,900 you will get offers immediately some higher and some lower, but it will sell. If not than your 599 was to high, let alone your 685

Nov 1, 2009
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Dorene S.
Broker/Agent
Torrance, CA

I don't know the particulars of the property, Location,income,condition etc. How is the property being marketed? Is it listed with a commercial real estate agency (most important*). Also evaluate the market...and the price.

Feb 9, 2010
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Dorene S.
Broker/Agent
Torrance, CA

Dear Doug,
There could be a number of reasons. The two most important are marketing, and price. Double check both before going further.

May 17, 2010
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